1、What is cross-species arbitrage (1) Introduction Arbitrage refers to the process of buying or selling a financial asset while selling or buying another related financial asset to gain arbitrage from the price difference. When two contracts are strongly correlated, there may be a similar movement relationship and the spread between the two contracts will remain at a certain level. When there is a change in the market, the spread between the two contracts will deviate from the equilibrium level. At this point, it is possible to buy one of the contracts and sell one of the contracts, closing the position when the spread returns to normal levels and gaining a profit. (2) Features (1) The two assets to be arbitrated must have a certain degree of correlation. (2) The underlying of the two contracts are different and have the same expiry time. (3) The spreads between the two assets show a certain pattern. The most common method to determine the correlation between contracts is to use the EG two-step method to do a cointegration test on the two series to determine whether the two series are smooth. Only if the single order of integration is the same can there be some relationship between the two. Therefore, the mean of the changes is commonly used to set the threshold. That is, the mean and variance of the difference between the two markers over the past N days are used. (3) Methods The traditional method of using spreads for cross-country arbitrage is to calculate the mean and variance and set thresholds for opening, closing and stopping positions. When the new price reaches the threshold, a corresponding position is opened and closed. There are two main methods of selecting the mean, the first being to fix the mean. First historical prices to calculate the corresponding threshold (for example, using the data from February 2017-June 2017 to calculate the threshold, in July 2019 to carry out arbitrage), and then use the latest spread to compare, it will be found that the average value before and after is very different. 2. In addition to relying on a scientific strategy, quantitative trading of speculative coins also requires finding ways to save money. One of the easiest ways to do this is to take advantage of the discounted transaction fees. Although the handling fee is small, it must not be ignored. I once calculated that as long as the transactions are frequent and the transaction time is long, the accumulation of small amounts may lead to more than 10,000 U. Next, I will introduce several common ways to reduce the handling fee for large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must use the invitation link below or use the invitation code "Q022W7SC" to register. https://accounts.binance.com/en/register?ref=Q022W7SC

(2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum savings rate of 20%. Use the link below to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you will not get the 20% cashback percentage.

(3) Lower FTX fees FTX is currently a very fast-growing exchange with a large number of contract players, you must sign up for FTX if you play contracts. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692

3, trading road is long, together to move forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community to study trading, add telegram friends to pull you into the community.